Ethiopian Airlines $137M Loss: Middle East War Impact

The ongoing conflict in the Middle East has prompted Ethiopian Airlines to suspend flights to 10 destinations across the Gulf and wider region, resulting in significant disruptions to passenger and cargo operations at Africa’s largest aviation hub in Addis Ababa.

Africa’s largest airline suspends regional operations

According to the airline’s business manager, Lemma Yadhecha, the disruption has led to the cancellation of as many as 15 passenger flights daily, totaling over 100 flights per week as security risks escalate across regional airspace.

“The airline has cancelled more than 100 flights a week, with some destinations previously operating up to three flights daily, and we have lost about $137 million in a week,” Yadhecha told local media.

The operational shock extends beyond passenger travel, with cargo services – a critical revenue stream for the carrier and a key logistics link between Africa and the Middle East – also suspended on several routes.

To mitigate losses, the airline has begun redeploying aircraft that previously served Middle Eastern destinations to alternative international routes, aiming to maintain aircraft utilization and soften the financial impact while the conflict continues to threaten regional airspace.

Aviation analysts warn the broader airline industry could face mounting pressure if the conflict persists, with rising global oil prices – a typical consequence of geopolitical instability in the Gulf – potentially increasing operating costs for airlines worldwide.

The latest escalation began when the United States and Israel launched air strikes against Iran last weekend. Tehran has responded with missile and drone attacks across the Gulf region, raising fears of a wider regional conflict.

Estimates from the Center for Strategic and International Studies indicate the first 100 hours of the military campaign, known as Operation Epic Fury, cost approximately $3.7 billion, or around $891 million per day.

The humanitarian toll is also rising, with reports indicating more than 1,300 civilians have been killed in Iran, including over 165 children, while several military casualties have been reported among forces from the United States and Israel. Casualties have also been reported in the United Arab Emirates.

For Ethiopian Airlines, a vital connector between continents, the conflict illustrates how quickly geopolitical crises can ripple through global travel and trade networks.